The CEO of the Financial Conduct Authority ( FCA) shared his point of view on the crypto industry and explained how people are misusing crypto assets in illegal activities.
In developing and developed countries, crypto adoption is at a tremendous level. Even people from the UK and UK are not lagging to make investments in crypto assets. Due to the surge in crypto adoption, misuse can be seen, where people are using crypto assets in multiple types of illegal activities.
Nikhil Rathi, CEO of the UK’s top financial regulator FCA, was questioned about his point of view on the crypto industry in the UK.
Then, Nikhil said that crypto-assets like Bitcoin and Ethereum adoption surged rapidly in the use of illicit criminal activities like money laundering, drug trafficking, etc. And in this situation, investors should be aware of the risk associated with these things because these are highly risky and may end up in huge losses.
Further, Nikhil took the reference of the Financial Services Compensation Scheme (FSCS) provision to give compensation to the people, who are losing money in case of any incident of illicit activities.
Nikhil said that crypto investors should be kicked out of the compensation guidelines of FSCS. He added:
“I would suggest we simply say that anything crypto-related should not be entitled to compensation, that consumers are clear about that when they are investing.”
FSCS is a UK-based British insurance authority, which offers compensation to those local citizens of the UK, who lost money in any kind of fraud incidents in crypto.
Nikhil also said that FCA got many applications in the past regarding the regulatory approval of the digital assets Exchange, but the majority of them were not eligible to get approval, so FCA rejected them.
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